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#MATI-Marketing & Ad:Tech Israel_Feb 11, 2014_The Future of Ad Supported Media

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Information about #MATI-Marketing & Ad:Tech Israel_Feb 11, 2014_The Future of Ad Supported...
Technology

Published on February 15, 2014

Author: levshapiro

Source: slideshare.net

Description

Vickie Nauman, President- North America at 7Digital, explores the future of ad-supported media at the #MATI-Marketing & Ad:Tech Israel conference, February 11, 2014, Tel Aviv
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My Digital Odyssey, Lessons Learned, & the Future of Ad-Supported Streaming Media Vickie Nauman Marketing and Ad:Tech Summit Tel Aviv February 2014

Pre-Digital • 10 years in marketing & US terrestrial radio Traditional and physical media defined by: Distinct channels into a finite potential audience Programming and ads for a targeted demographic Limited by: Printing capabilities Broadcast signal reach Retail inventory Scarcity of content But all that changed…. NETWORK

My Digital Odyssey • 1999 Napster 1.0

My Digital Odyssey • 1999 Napster 1.0

My Digital Odyssey • 1999 Napster 1.0 The Disappearance of Scarcity

My Digital Odyssey • 1999 Napster 1.0 • 2000-2004 early legal digital services

My Digital Odyssey • 1999 Napster 1.0 • 2000-2004 early legal digital services Legal battle lines drawn Power shifted from distributor to the consumer Geographic limits lifted from media marketplace

My Digital Odyssey • 1999 Napster 1.0 • 2000-2004 early legal digital services • 2004-2007 global digital landscape Digital licensing and partnerships in Europe, Asia, US Each country varied: Cell phone adoption Payment methods Network standards (ie GSM) Importance of local culture on media appeal Intellectual property rights

My Digital Odyssey • 1999 Napster 1.0 • 2000-2004 early legal digital services • 2004-2007 global digital landscape “Global digital” actually patchwork of country-specific laws, standards, devices and gatekeepers Resulting in country-specific user behavior in digital media

My Digital Odyssey • • • • 1999 Napster 1.0 2000-2004 early legal digital services 2004-2007 global digital landscape 2007-2014 connected devices proliferation of “smart” everything watches, glasses, phones, tablets, etc emergence of platforms explosion of content

My Digital Odyssey • • • • 1999 Napster 1.0 2000-2004 early legal digital services 2004-2007 global digital landscape 2007-2014 connected devices Hardware, software, and content must integrate elegantly …but services have still not reached sustainability

The Future of Digital Media? • DEVICES AND PLATFORMS: will continue to evolve rapidly – table stakes In 2009, 2.5B connected devices – 2013 10B – projected 30B by 2020(1) • CONSUMERS: fragmented mind / wallet share in digital media “firehose” • GLOBAL: countries’ media consumption patterns developing differently 48% of Swedes streamed music in 2013; Japan only 4%(2) • LEGAL: copyright / usage laws lag behind technological innovation • SERVICES: emergence of new models & price points, mobile ad-supported The MASS MARKET model for media remains - low threshold for consumers - simple to use and understand - advertising based (1) Gartner Oct 2013 (2) IFPI 2013

The Future of Digital Media? • Betting Big on Mobile Ad-Supported Users want it: 70% cite terrestrial radio as top music discovery in 2013 (3) 15% of total radio listening in the top 5 US markets is now online (5) 70% of digital listening is on mobile – 30% desktop(5) Mass consumer adoption to digital media is largely free ad-supported(3) 72% of listeners prefer ad-supported rather than subscription(5) Advertisers are joining the party: US mobile ad spend doubled to $9.6B in 2013(4) $35B in annual revenue in audio advertising globally, $18B is US alone(5) API and tech-enabled ad engines launching (3) Midia Cons Dec 2013 (4) eMarketer Dec 2013 (5) Triton Digital 2014

Thank you! Vickie.Nauman@7digital.com Vickie Nauman President 7digital US Los Angeles, CA

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